Under what conditions can Surestay Hotel By Best Western refuse a franchise transfer?
Surestay_Hotel_By_Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Our consent to the Change of Ownership Transfer is subject to the following conditions, all of which must be satisfied at or before the date of closing the Change of Ownership Transfer ("Closing"):
- 13.2.3.1 the Transferee submits a Change of Ownership Application, pays our then current Application Fee and Initial Franchise Fee, executes our then-current form of new franchise agreement and all ancillary forms, including a guaranty from a third party acceptable to us, if required;
- 13.2.3.2 you are not in default of this Agreement or any other agreements with us or our Affiliates;
- 13.2.3.3 you or the Transferee pay all amounts due to us and the Entities through the date of the Closing;
- 13.2.3.4 you execute our then-current form of voluntary termination agreement, which may include a general release, covering termination of this Agreement;
- 13.2.3.5 you conclude to our satisfaction, or provide adequate security for, any suit, action, or proceeding pending or threatened against you, us or any Entity with respect to the Hotel, which may result in liability on the part of us or any Entity;
- 13.2.3.6 you, the Transferee and/or transferee Equity Owner(s) submit to us all information related to the Transfer that we require, including applications; and
- 13.2.3.7 the Transferee meets our then-current business requirements for new franchisees and is neither a Sanctioned Person nor a Competitor.
Source: Item 23 — Receipts (FDD pages 88–286)
What This Means (2025 FDD)
According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, the franchisor's consent to a Change of Ownership Transfer is subject to specific conditions that must be met before the transfer can be finalized.
The conditions include the Transferee submitting a Change of Ownership Application, paying the current Application Fee and Initial Franchise Fee, and executing the then-current form of the new franchise agreement along with all ancillary forms, potentially including a guaranty from a third party acceptable to Surestay Hotel By Best Western. The franchisee must not be in default of the Franchise Agreement or any other agreements with Surestay Hotel By Best Western or its Affiliates. All amounts due to Surestay Hotel By Best Western and related entities must be paid by the franchisee or the Transferee through the date of Closing.
Additionally, the franchisee must execute the then-current form of voluntary termination agreement, which may include a general release, covering the termination of the existing Franchise Agreement. Any pending or threatened legal actions against the franchisee, Surestay Hotel By Best Western, or any related entity concerning the hotel must be resolved to Surestay Hotel By Best Western's satisfaction, or adequate security must be provided. The franchisee, the Transferee, and/or transferee Equity Owner(s) must submit all required information related to the Transfer, including applications. Finally, the Transferee must meet Surestay Hotel By Best Western's then-current business requirements for new franchisees and must not be a Sanctioned Person or a Competitor.